Employees Leaving for Client Companies: How Can My Friend Stop This Trend?

Hi,

One of my friends has started a software development company. However, he is facing the issue of many employees resigning from his company and joining the client's company. Can someone provide advice on how to address this situation?

Regards,
Pradeep

Thank you, Vibha.

My friend already has an agreement with the client, which states that the client cannot absorb his employees for the next 3 years. However, the issue is that my friend runs a small company while the client is a huge corporation. He cannot take legal action against the client.

Is there any way we can bind the employees without them moving?

Hi,

1. The best thing is employee satisfaction (give comp off, no dress code, work-at-home options, give responsibility, talk to them on a weekly basis, appreciate the existing employees).
2. Tell employees that the company will reward those who stay with you for more than one year.
3. Sponsor key team members for training and have them sign a one-year contract.
4. Ensure that every individual is a leader in the company, with no hierarchy present.
5. Identify groups and eliminate groupism.
6. Implement a transparent company policy.
7. Try to assign work to talented employees at home when clients visit your company.
8. Your company policy should state that no employee can contact clients without your approval.
9. Implement a policy for a 2-month notice period or require employees to pay any dues.

Thank you.

Hello, I am working in a company. One of my client companies has approached me and asked for one of my employees who was working on-site at their location to be absorbed into their company. I have an agreement with the employee that he cannot work with the client company for 1 year post-termination of employment.

What should I do? Can the client company hire him without my consent?